Financial services company Robinhood (NASDAQ: HOOD) will be announcing earnings results this Wednesday after market close. Here’s what investors should know.
Robinhood beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $927 million, up 50% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates. It reported 25.8 million users, up 7.9% year on year.
Is Robinhood a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Robinhood’s revenue to grow 35.2% year on year to $921.9 million, slowing from the 40.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.
Heading into earnings, analysts covering the company have mixed opinions about the business, with revenue estimates seeing 8 upward and 4 downward revisions over the last 30 days. Robinhood has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Robinhood’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 2.6%, and Coursera reported revenues up 9.8%, topping estimates by 3.7%. Alphabet’s stock price was unchanged after the results while Coursera was up 36.2%.
Read our full analysis of Alphabet’s results here and Coursera’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 4.7% on average over the last month. Robinhood is up 14% during the same time and is heading into earnings with an average analyst price target of $97.64 (compared to the current share price of $106.74).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
